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Mobile Money: The Foundation for all Industries in Cash-Based Economies mPay Connect, Inc.

mPay Connect, Inc. info@mpayconnect.com

agenda

1. background 2. why mobile money? 3. uses in the field

mPay Connect, Inc. 2 info@mpayconnect.com

background

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mPay Connect, Inc. 3 info@mpayconnect.com

mPay Connect Consulting


Global Team for Mobile Financial Services
mPay Connect Global Affiliate Team
Canada: Led Product Development for MNO Consortium to launch mobile payments system Canada: Architected and oversaw the development of the NFC/Mobile commerce infrastructure in Canada together with Canadian members of the GSM Association, CDMA carriers, FIs, associations and processors North America: Led PayPal Mobile Business Development for North America

Mexico: Chief Jamaica: Developed interlocutor for Regulatory policy PayPal on branchless recommendations for payments with the Central Bank. government of Mexico Latin America: Chief global regulatory negotiator for

China: Chief interlocutor for PayPal on branchless Europe: Developed global market strategy payments with the Peoples Bank of China for Fortune 500 firm for mobile money Bangladesh: Developed bKash Business Plan (JV with BRAC). Awarded $10 million. Nigeria: Worked with client banks on interpreting Central Bank of India: For leading FI, Asia: Developed online payments Nigeria mobile regulations and created Mobile Airtime AML standards with FATF, which provided consortium currency were incorporated in 2009 typology, recommendations recommendation and stored value and branchless banking

cross boarder airtime for payments in Singapore and other Kenya: Advisor to processing platform countries in Asia startup mobile PayPal, with responsibility for Central Banks and other money platform Australia: Assisted local country national regulators, World Bank, and Inter-American Kopo Kopo managers in launching PayPal Development Bank; specific expertise in financial South Africa: Launched branchless Mobile services licensing in the PRC, and Latin America banking services via USSD/WAP/SMS

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mPay Connect, Inc. 4 info@mpayconnect.com

mPay Connect Consulting


Join our Linked In Group: Mobile Payments Series mPay Connect
Representative Clients:

World Economic Forum United Nations Foundation (mHealth Alliance) bKash: Bangladesh Joint Venture between BRAC and Money in Motion Jamaican Central Bank Inter-American Development Bank 3 of the 4 largest banks in the U.S. Global mobile operators

Publications: World Economic Forum, The mHealth Alliance, Amplifying the Impact: Examining the Intersections between Mobile Health and Mobile Money, (January 2011) for Davos Annual Summit. Innovations Magazine (MIT Press) (June 2011) on (The) Mobile Money Movement: Catalyst to Jumpstart Emerging Markets Inter-American Development Bank: Addressing Gender Concerns around Mobile Money Access in Jamaica

mPay Connect, Inc. 5 info@mpayconnect.com

why mobile money?

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mPay Connect, Inc. 6 info@mpayconnect.com

mobile money = foundation for all industries in cash-dependent markets

mHealth, Off-Grid Energy, Food Security, Disaster Relief

Mobile Financial Services


salary, payments, savings, insurance, credit

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mPay Connect, Inc. 7 info@mpayconnect.com

mobile money defined

Using the mobile phone as a channel to conduct payments, account management, and other financial services
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mPay Connect, Inc. 8 info@mpayconnect.com

mobile money = (mobile) financial services


Mobile Financial Services

Mobile Payments

Mobile Microfinance Mobile Finance

Mobile Banking Mobile Banking

P2P

C2B

B2B

B/G 2C
Salary disbursements Pensions Rebates

Credit, Savings, Insurance


Disburse, Repay Savings, Insurance Insuran

Transactional
Mobile bill payment Brokerage

Informational
Alerts Account balance & history

Mobile Money Transfer At store Replace cash Domestic or International (proximity payments) in supply chain Mobile remittances Mobile online (e.g. eBay or ringtones) Micropayments (to bill)

mPay Connect, Inc. info@mpayconnect.com

increases financial access


World Economic Pyramid
Banks

500 Mill
*>$20k/yr

2 Billion
*$3260 to $20k/yr
Today

Unbanked, Mobile Opportunity: 1.7 Billion in 2012


Source: CGAP

4 Billion
*<$3260/yr or <$9/day
Source: World Resources Institute
(*Individual Annual Income: 2005 USD Purchasing Power Parity)

2012

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mPay Connect, Inc. info@mpayconnect.com

reduces costs of financial services

$ 4.00
Branch

$ 3.75
Live Rep

$ 1.50
IVR

$ .08

Mobile

mPay Connect, Inc.

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mPay Connect, Inc. info@mpayconnect.com

Case Study: Kenyas mPesa takes off like Wildfire


Mobile money transfers via SMS

Mobile payment system built using SMS messaging

How mPesa is used:


Send money (Agent) Receive money (Agent) Pay for things (Merchant, Bills, etc.)

Registered Customers
8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 3,367,192

Now 14 million!
7,000,000 (~50% Safaricom base)

2,000,000
1,000,000 0 268,499 July 2007 July 2008 July 2009

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mPay Connect, Inc. info@mpayconnect.com

healthcare

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mPay Connect, Inc. 13 info@mpayconnect.com

mHealth and MFS are inextricably linked by common building blocks and cross-sector dependencies

Prosperity Wealth Mobile Financial Services


Pay for mHealth

Health

mHealth

Use case for MFS

Policy Concerns Business Elements Infrastructure Users


mPay Connect, Inc. info@mpayconnect.com

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Mobile Financial Services

mHealth

Using MFS to spur mHealth e.g. Maternal Continuum of Care


PrePregnancy

WHO-MNCH Continuum of Care

Pregnancy

Birth

Postnatal

Patient Level

Conditional Cash Transfers Prepaid savings accounts Micro-Insurance Payments (ambulatory, health information)

Provider / Service Level

Voucher payments Supply chain Data retrieval / decision support Management services Testing, Labs, Diagnostics

HR / Administrative Level

Salary Disbursements Performance-based Funding Conditional Cash Transfers Expense payouts

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mPay Connect, Inc. info@mpayconnect.com

food security

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mPay Connect, Inc. 16 info@mpayconnect.com

issue: precarious cycle further exacerbated by lack of financial services


Cant invest Crop Output Down

Less Money

Turn to Sex Work Less Farming

Cant buy food Caretaker Burden Up

Malnutrition/ Illness

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innovations

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mPay Connect, Inc. 18 info@mpayconnect.com

Mobile Financial Services: Lease-to-Buy for Off-Grid Energy

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mPay Connect, Inc. info@mpayconnect.com

Mobile Vouchers and Micro-Savings for Food and Healthcare


Mobile Vouchers Prepaid Savings with Mobile Top-up

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mPay Connect, Inc. info@mpayconnect.com

Mobile Micro-Insurance for Small Holder Farmers


Syngentas Kilimo Salama in Kenya

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Contact us: info@mPayConnect.com

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mPay Connect, Inc. 22 info@mpayconnect.com